Roche’s Carmot Takeover: Tackling Obesity, Potential Drugs Await Until 2030

Roche's Carmot Takeover: Tackling Obesity, Potential Drugs Await Until 2030

Swiss pharmaceuticals giant Roche is set to acquire anti-obesity drug developer Carmot Therapeutics, becoming the latest company to attempt to unseat Novo Nordisk and Eli Lilly’s dominance within the global weight loss drugs market.

Under the deal terms, Carmot’s equity holders will receive $2.7 billion in cash on the transaction’s close and could pocket up to a further $400 million, depending on reaching certain milestones.

The U.S. takeover target’s early-stage technology could help crack highly prized oral obesity treatments, Roche Pharmaceuticals CEO Teresa Graham said Monday. Still, it may be several years before the drugs are widely available.

“These assets are all relatively early stage, so we would expect the 2030+ time frame is when we’ll actually be able to bring these products to market,” Graham told CNBC’s Julianna Tatelbaum.

The deal will provide Roche access to Carmot’s current research and development portfolio, including all clinical and preclinical assets.

See Also:  Unveiling the Bright Future of Video Enhancement with AI

Shares of the Swiss company, which have been in the doldrums this year, were up 2.25% after news of the acquisition deal.

California-based Carmot’s most promising drug candidate, a once-weekly injection called CT-388, belongs to a class known as dual GLP-1/GIP receptor agonists — which are the same as those used by Eli Lilly’s Mounjaro, or Zepbound, and mimic a hormone typically released into the body after eating.

After encouraging Phase 1 trial results, the drug is now due to be tested on humans in the second of three trial stages, Roche said in a statement.

Carmot’s once-daily oral candidate known as CT-996, which is is currently undergoing Phase 1 trials, could help differentiate Roche in an increasingly crowded obesity drugs market.

“The products that we’re acquiring in 996 has some interesting data to it,” Graham said.

See Also:  Asus EeeBook X205 Notebook launched in India

“I do think that we will figure out how to deliver these drugs orally; it’s just a matter of time,” she added.

Obesity pill trials ramp up

A series of pharmaceutical companies are currently trialing oral obesity treatments to improve patient accessibility. Last month, according to Reuters, Astra Zeneca announced that it would pay up to $2 billion for the rights to an experimental pill from China’s Eccogene.

However, analysts have expressed caution over the efficacy of such treatments, and Pfizer dropped its plans for a twice-weekly pill last week after recording a spike in side effects.

It comes as new entrants pile into the global obesity market — estimated to be worth $200 billion within the next decade — while existing heavyweights Novo Nordisk and Eli Lilly struggle to keep up with soaring demand.

Roche was among one of the first drugmakers to work on GLP-1 treatments more than a decade ago but halted its initial trials after patients dropped out. Graham said Monday is now a “great time” to reenter the market.

See Also:  Google doodle celebrates legendary singer Kishore Kumar's birthday

“We have a huge amount of expertise to bring to bear from the diabetes franchise in diagnostics, which I think will be a really exciting partnership,” Graham said. “The acquisition of Carmont only bolsters what is already quite an exciting and diverse pipeline.”

Avatar photo
About Shrabani Sarkar 698 Articles
Shrabani Sarkar is a celebrity news author who has been covering the latest gossip and scandals in the entertainment industry for Panasiabiz. Shrabani is passionate about celebrity news and enjoys sharing her insights and opinions with her loyal fans. Shrabani can be reached at [email protected]